Business Segments Information

12 Months Ended

Jun. 30, 2013

Business Segments Information [Abstract]

Business Segments Information

Note 12 – Business Segments Information

We operate our business in two distinct operating and reportable segments: “Specialty Foods” and “Glassware and Candles.” Our management evaluates segment performance based on sales and operating income.

Specialty Foods–includes the production, marketing and sale of a family of pourable and refrigerated produce salad dressings, croutons, sauces, fruit glazes, refrigerated produce vegetable and fruit dips, chip dips, dry and frozen pasta and egg noodles, caviar, frozen hearth-baked breads, frozen yeast rolls, sweet rolls and biscuits. Salad dressings, sauces, croutons, frozen pasta and egg noodles, frozen bread products and frozen yeast rolls are sold to both retail and foodservice markets. The remaining products of this business segment are primarily directed to retail markets.

Glassware and Candles–includes the production and marketing of candles in a variety of popular sizes, shapes and scents and other home fragrance products and, through May 2013, also included the distribution of various commercial products, including glassware and candles. This segment’s products are sold primarily to retail markets such as mass merchandisers and food and drug stores and, through May 2013, to a lesser extent to commercial markets.  The commercial product lines were sold in May 2013. The sales and related operating income were not material to the segment’s results of operations.

The following table sets forth reportable segment information with respect to the amount of net sales contributed by each class of similar products of our consolidated net sales in each of the years ending June 30:

	2013		2012		2011
Specialty Foods
Non-frozen	$	649,447	$	621,497	$	570,547
Frozen		364,356		367,440		352,309
Total Specialty Foods	$	1,013,803	$	988,937	$	922,856
Glassware and Candles
Consumer table and giftware	$	148,304	$	137,526	$	161,635
Nonconsumer ware and other		3,802		4,896		5,455
Total Glassware and Candles	$	152,106	$	142,422	$	167,090
Total	$	1,165,909	$	1,131,359	$	1,089,946

Corporate Expenses–include various expenses of a general corporate nature, as well as costs related to certain divested or closed nonfood operations, including the expense associated with retirement plans applicable to those closed units. These corporate expenses are generally not directly attributable to the reportable operating segments and therefore have not been allocated to those segments.

The following sets forth certain additional financial information attributable to our reportable segments for the years ended June 30 and certain items retained at the corporate level:

	2013		2012		2011
Net Sales
Specialty Foods	$	1,013,803	$	988,937	$	922,856
Glassware and Candles		152,106		142,422		167,090
Total	$	1,165,909	$	1,131,359	$	1,089,946
Operating Income (1)
Specialty Foods	$	165,710	$	151,479	$	155,218
Glassware and Candles		7,983		2,105		3,764
Corporate Expenses		(11,787)		(10,297)		(11,978)
Total	$	161,906	$	143,287	$	147,004
Identifiable Assets (2)
Specialty Foods	$	392,494	$	384,604	$	385,470
Glassware and Candles		79,568		85,714		87,452
Corporate		147,902		212,317		149,167
Total	$	619,964	$	682,635	$	622,089
Capital Expenditures
Specialty Foods	$	23,341	$	15,080	$	34,292
Glassware and Candles		687		841		948
Corporate		119		426		103
Total	$	24,147	$	16,347	$	35,343
Depreciation and Amortization
Specialty Foods	$	17,469	$	17,512	$	15,435
Glassware and Candles		2,497		2,677		3,427
Corporate		148		77		78
Total	$	20,114	$	20,266	$	18,940

(1)Operating income represents net sales less operating expenses related to the business segments. All intercompany transactions have been eliminated, and intersegment revenues are not significant.

(2)Identifiable assets for each segment include those assets used in its operations and intangible assets allocated to purchased businesses. Corporate assets consist principally of cash and equivalents, prepaid Federal, state and local income taxes and deferred income taxes.

Combined net sales from the two segments attributable to Wal-Mart Stores, Inc. (“Wal-Mart”) for each of the years ending June 30 were as follows:

	2013			2012			2011
Net sales to Wal-Mart	$	256,053		$	238,719		$	243,064
As a percentage of consolidated net sales		22	%		21	%		22	%

Combined accounts receivable for the two segments attributable to Wal-Mart at June 30 as a percentage of consolidated accounts receivable were as follows:

	2013			2012
Accounts receivable due from Wal-Mart as a percentage of consolidated accounts receivable		35	%		41	%

Specialty Foods segment net sales attributable to McLane Company, Inc., a wholesale distribution subsidiary of Berkshire Hathaway, Inc., for the year ended June 30, 2013 were approximately $132.9 million, or approximately 11% of consolidated net sales.